BiggerPockets

I'm primarily a re-hab and hold guy, but I will offer this: If you have a re-hab with up to 30k in profit then it likely will take a lot of work to make that happen, and the 90 days is not an issue because the duration of the construction will be 45 days+ and could be the full 90 depending what needs done and how you go about it.

They do it in 2 weeks on TV, in real life it doesn't work like that.

Wholesale sounds good, 95% of all wholesalers I meet can't bring me a better deal than I can find on my own, not trying to discourage you, just realize that there are so many wannabees out there. if you are wholesaleing rehab properties, your savvy buyers are going to want an absolute steal, I would be surprised if you can break off 5-10k consistently with no money and no risk.

sounds beautiful, that's why the gurus sell that...

now is as good a time to rehab as any if you ask me. if you know what your doing and do your homework you'll do fine. if you are just looking to do your first one, make sure you have plenty of $$ because it WILL take more than you anticipate. I also suggest you do a smaller ranch style house, stay away from really big houses. Watch "the money-pit" movie for inspiration, not "flip this house."

I strongly agree. I've been flipping successfully in this market. As long as you know the true ARV (keyword: "true") and have a tight reign on the repair costs, you can do just as well flipping in this market as in any other market. You must know all the numbers before you take on a deal.

Truer words were never said. I have been rehabbing, off and on, for more than fifteen years. I have never bought a property from a wholesaler. Not that I have anything against it, but I have never had one bring me a better deal than what I could easily find myself. At every REI club meeting I am approached by so-called wholesalers (6 at last week's meeting) because I am one of the better known investors in the group. It's always the same line, "I'm going into wholesaling, can I call you when I find a property?" or, "can I add you to my buyer's list?" These people rarely show up for the next meeting because they've gone on to something else.

It seems that the vast majority of these people have taken some guru course that promises them real estate riches from wholesaling properties with out the need for any cash, risk, expertise or work.

If you are going to wholesale properties be prepared to do real work and locate real buyers for properties that are real deals.

:cool:

Double post
sorry

This thread seems full of knowledgable poppe on his topic. I have no home repair experience, but very much want to begin flipping houses. My train of thought is getting 3 gc's to bid on my
properties to ensure I'm not being taken to the cleaners. Does this make sense or is there a better way you guys can reccomend to no get taken advantage of?

Here's my two cents worth....

It all depends on what your business model is. If your focus is cashflow, then right now is harvest season.

If your focused on capital gains (flipping) then (depending on your market) you may be having a rough time right now.

It all depends on what your current plan is.

Greg,
I decided to switch from buy and hold to flipping because my bank was balking at me having more than 5 mortgages (they want 6 mo reserves for all properties). I just sold my first flip on Thursday and made a net profit of 34K on a 118K purchase with 8K in rehab cost. 37 days from date of purchase to date of sale closing. Had to shop the buyer to several lenders until finding a local lender who looked beyond the 20%/ 20K profit restriction that is all over fannie and freddie loans. I have my second flip under contract and should profit around 27K but have to wait another month to close since the buyer is a FHA buyer and have to wait the 91 days.
So from my own limited but very recent experience it is very worth while.
PS - I am in no way bragging about these two flips but wanted to give actual numbers so that you have a better feel for what can be done. I realize that the next flip may not turn out so great.

This is a great market for buy and hold in many parts of the country. I buy fixers and fix and hold.

This should be an easy market to find something to buy, and not such an easy market to sell.

So if you are going to fix and flip, you must have enough room to price the final product below market, and even then, you have to find buyers who have money or can get a mortgage-- not nearly as easy as it was in times past.

As for wholesalers, sure I'd buy if they ever brought me just what I wanted at a price I liked. I don't begrudge them a profit. However, they don't seem to be able to get their heads around what I want, and keep trying to sell me deals that aren't even close, and that are things I've told them repeatedly is not what I am looking for.

If I say I don't buy 20 miles south, you (generic you) are wasting your time to keep bringing me your "great" deals 20 miles south. Not to mention, I know what would be a great deal down there, and you aren't finding it.

Thank you very much.